Lloyds Vantage account - advice needed as it doesn't feel right!!!

D1zzy

consumers_revenge wrote: »

Hi,

I have about £1500 I can transfer in every month and back out at the end. Need to keep these fluid so dont want to put the money into an ISA or anything. Already done A/L and have 3 halifax rewards running atm.

Looking to upgrade my classic to advantage ( the free one ) but is it any good?

Thoughts or advice please?

"Vantage" not "Advantage" - its no different from you classic except that it pays you more interest and you must put £1000 through the account each month. (no point in putting more than £1000 through, unless you want to leave it there for a bit to accrue some extra interest on the higher balance.)

G_M

1) Don't do the transfer at the end of the month (for reasons already explained) and
2) set up both standing orders for the same day - earn max interest by never reducing the balance in your Vantage.

consumers_revenge

D1zzy wrote: »

"Vantage" not "Advantage" - its no different from you classic except that it pays you more interest and you must put £1000 through the account each month. (no point in putting more than £1000 through, unless you want to leave it there for a bit to accrue some extra interest on the higher balance.)

My intention was to try to leave about 1500-2000 in there from month start to month end and ferry it in and out with quick payments?

Is there a fee if you dont get in 1000 during the month?

Is the interest added monthly?

anamenottaken

consumers_revenge wrote: »

My intention was to try to leave about 1500-2000 in there from month start to month end and ferry it in and out with quick payments?

Is there a fee if you dont get in 1000 during the month?

Is the interest added monthly?

For a balance of between £1K and £3K, you would receive monthly-paid interest of 1.98% pa gross, 1.59% pa nett. If your interest were paid gross this would be 2.00% AER.

If you fail to pay in £1K in any month, the penalty is that you earn just 0.1% gross pa.

If you have just £3K to spare, you could probably find a better account without the bother of feeding £1K in and out every month.

D1zzy

If you already have a classic account, there is nothing to lose by upgrading it. Currently you get no interest, by upgrading you will at least get some - providing you put the £1000 through each month. If you don't you are exactly as now gaining no interest in that month. If you can get your balance upto £3000 you will get 3% which is pretty good. Interest is calculated daily (the rate based on the balance- so worth keeping it as high as poss for as long as poss) and paid monthly.